Background Oligohydramnios is a state of deficient amniotic fluid defined objectively using ultrasound measurements as single deepest vertical pocket less than 2 centimeters and/or amniotic fluid index less than 5 centimeters. It has been correlated with conditions that threaten both maternal and fetal health. The aim of this stuy is to assess determinants of adverse maternal and perinatal outcome in women with oligohydramnios after 37+0 weeks in Ayder Comprehensive Specialized Hospital and Mekelle General Hospital from April 1, 2018 – March 31, 2019.Methods This was prospective observational study. Total population purposive sampling method was employed to collect data prospectively. Result During the study period, there were a total of 10,451 deliveries, of which 273 were complicated with oligohydramnios, making the prevalence of term oligohydramnios 2.6%. The composite adverse perinatal and maternal outcomes were 38.1% and 89.4% respectively. Primigravidity, degree of oligohydramnios, presence of intrauterine growth restriction and postterm pregnancy were associated with adverse perinatal outcome. Degree of oligohydramnios and hypertensive disorders of pregnancy were found to be predictor of composite adverse maternal outcome. Conclusion Appreciation of determinants of composite adverse maternal and neonatal outcome can aid prompt interventions and mobilization of resources for resuscitation and early transfer to neonatal intensive care unit. Knowledge of determinants of maternal outcome can serve as a tool for patient counseling and for anticipation of maternal complications.